How is group life insurance distinct from individual life insurance?

Group life insurance is distinct from individual life insurance primarily because it provides coverage to a group of people under a single policy, typically through an employer or a similar organization. This structure allows for a collective approach to risk management, where the insurance is often easier to obtain and may not require individual underwriting for each member of the group.

Additionally, group policies usually offer a simplified application process, and in many cases, coverage is provided at a lower cost per person compared to individual policies. This affordability typically makes it a valuable benefit for employees, as employers often subsidize a portion of the premiums.

In contrast, individual life insurance policies are tailored for each individual and typically require more thorough underwriting processes to assess risk, which can lead to higher premiums. This key distinction highlights the nature of risk pooling in group life insurance as compared to the personalized assessment involved in individual policies.